Central bank independence and price stability: evidence from OECD-countries

S.-O. Daunfeldt, X. de Luna
2007 Oxford Economic Papers  
In this paper, we use a non-parametric regression method to compare the transition process from high to low inflation with the implementation dates of central bank independence reforms. In a majority of the countries, price stability is achieved before more independence is given to the central bank. This suggests that the credibility of a low inflation goal can be achieved without institutional reforms which grant the central bank more independence from the political policymakers.
doi:10.1093/oep/gpn004 fatcat:5nj5tzulp5c7zj6ujqcfwj5d6a